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Amazon wins legal fight with IBM for $600M CIA contract

updated 12:46 pm EDT, Tue October 8, 2013

Amazon to build private cloud

Amazon has reportedly won a legal battle with IBM over a $600 million contract with the Central Intelligence Agency. The companies have been competing for a ten-year agreement to help the agency build and manage a large-scale private cloud network for data-mining operations.

The online retailer already landed the deal with a winning bid early this year, however IBM protested details of the bidding process. The Government Accountability Office sided with the latter company, which had argued that the CIA improperly estimated prices and waived certain contract requirements just for Amazon, according to a Bloomberg report.

"This court decision seems especially inappropriate in light of the current times, since IBM's bid was superior in many ways, including being substantially more cost-effective," IBM said in a statement.

IBM suggests it will appeal the latest decision.

by MacNN Staff



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